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Begin by preparing the schedule of cost of goods manufactured​ (in millions). Start with the direct materials and labor​ costs, then indirect manufacturing​ costs, and finally complete the schedule by calculating the cost of goods manufactured.

Answer :

Suppose (open) Finished goods= 171000

    Opening work in process = 63000

   ending work in process  = 84000

  Opening material = 72000

Raw material purchased during the year = 467000

Raw material (ending) = 93000

Actual labour hour used = 6000 hours

Predetermind rate = $6/hour

units produced= 100 units

Explanation:

Step#1- Calculate Total manufacturing cost=?

total manufacturing cost = direct materiel used + direct labor used + Factory overhead.

                             = 446000+600000+36000=1082000

Direct material used=?

(Opening) Raw material  =  72000

Ad:: Raw material purchased =467000

                                                539000

less: Raw material (ending)  =   (93000)

      Raw material used             446000

Labour used=?

labour used = number of labour hours to produce*  units produced

                = 6000 * 100 =600000

Indirect overhead =?

Indirect overhead = predetermined overhead rate * labour hour used

                             = 6 * 6000= 36000

Schedule of cost of goods manufactured=?(COGM)

Total manufacturing cost        = 1082000

Add: work in process (open)  =  63000

                                                   1145000

less: work in process (end)   = ( 84000)

 Cost of goods manufactured    1061000

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